Home Hardware reported beginning inventory of 20 shovels, for a total cost of $100. The company had
Question:
Home Hardware reported beginning inventory of 20 shovels, for a total cost of $100. The company had the following transactions during the month:
Jan. 2 Sold 4 shovels on account at a selling price of $10 per unit.
16 Sold 10 shovels on account at a selling price of $10 per unit.
18 Bought 5 shovels on account at a cost of $5 per unit.
19 Sold 10 shovels on account at a selling price of $10 per unit.
24 Bought 10 shovels on account at a cost of $5 per unit.
31 Counted inventory and determined that 10 units were on hand.
Record a journal entry that shows all goods initially on hand at the beginning of the period (in the Inventory account) and all goods bought during the period (in the purchases account) as having been sold by the end of the period.
January 31
Cost of Goods Sold
Purchases
Record a journal entry that adjusts the accounting records to show that 10 units of inventory actually are still on hand (and should be recorded in the Inventory account) at the end of the period.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
January 31
Inventory
Expert Answer:
